Gold is worldwide measured in grams, ounces and by troy weight, just like any other precious metal such as platinum and Rhodium,. Depending on purity measures,it is categorised under different categories of carats, when it is mixed with other metals. Carat is the only way for general public to understand the purity level of gold they are buying. According to world gold standard guidelines, 24 carat is the purest form and as rating goes below 24 to 22 and so on, purity of gold goes proportionally less.
On the other hand coins and bars of gold are measured in decimal values ranging from 0 to 1 to evaluate the purity of gold biscuit/brick or bullion or coin. For instance, 0.995 decimal figure is close to more pure form of gold you can buy.
Current spot price of gold in India is solely dependent on trading that takes place in buying and selling gold markets. However, the standard price of gold in the world is decided by “Gold Fixing” in UK which is a procedure that evaluates and decides the current price benchmark for the market.
It was first established in 1919 in London City and since then it has been providing daily benchmark price to the world of gold traders. On the other hand we also have “Afternoon Fixing” that evaluates and provide benchmark prices when the trading markets in the United States open. It was first introduced in 1968.
More In-depth information about Gold History, Prices & Investment in India
History of using gold coins as a currency takes us back into 17th and 18th century, but with the introduction of paper currency, the value of using gold coins as a currency drastically declined as world economies evolved with time. During that time, there was a particular monetary system used that was based on weight of gold coin and depending on that it was given a name of unit of currency which worked well for decades.
For so many years, the Government of India had set the value of Indian Rupee currency so that 10 gram of gold was sold at particular amount of money, but as our economy evolved, value of rupee was declined significantly. It was similar situation in US and European market and to prevent devaluation of these currencies all the major banks came to agreement to manipulate the market. It all happened due to ever increasing demand of gold in countries like India and China.
|Date||22 Carat (Per 10 Gms.)||24 Carat (Per 10 Gms.)|
|Today's Price||Rs. 28780/-||Rs. 30780.75/-|
1968 was the worst year in terms of gold rates, because due to economic downfall of US and European countries, the value of Gold collapsed and then 2-tiered pricing system was introduced. However, they kept a fixed standard gold price scheme for international market and trading, but domestic or private markets were allowed to fluctuate prices. However, this system lasted only for 7 years and in 1975 this scheme was completely abandoned by the US.
This table shows hourly updated prices in all major Indian cities for both 22C and 24C categories. For month and year long results, please use search function at the top of the table.
Central banks of bigger economies like US, UK and China still hold the biggest amount of gold reserves. According to a recently published report, United States’ US Federal Reserve Bank in New York city has the largest gold reserve stored in its vault which more than 3% of total amount of gold metal ever mined in the world. United States also have huge amount of Gold Bullion Depository at Fort Knox. In 2014 and coming years the estimated gold supply would exceed 3860 tones which is more than 100 tonnes compared to actual demand.
After 1980 gold price in India started rising significantly because of huge demand and economic reforms in the country and the import price was $860 per ounce. In 1999 to 2003 rate of gold in India rapidly increased and since that it on the higher side with minor fluctuates. In 2008, prices touched a new high when India was important gold at $865 per ounce and in next 2 months it reached to $1023.50 per ounce.
Year 2009 was the time when gold trading market in India experienced tremendous positive momentum. It happened mainly because of global recession and decline in US dollar currency value. In December 2009, gold rate climbed to $1,217.23 per ounce and in next few years it continued to rise and in March it setup the new record of $1432.57 per ounce which was all time highest price in the world. The price of gold and other precious metals generally increase or decrease when the value of US dollar goes high, or if there are concerns in investors’ mind about mining problems in North Africa and Middle East. Since 2001, price value of gold is increasing at a rapid speed and crossed the 32,000/- INR mark in 2012-13 in India. As we speak the current price is close to 28,000/- per 10 grams and it is expected to increase in coming festive season.
Impact of Price Hike of Gold on Jewelry in Indian Market:
24K gold is the purest and softest form which is used in combination with other metals for making jewelry. Alloyed with other metals, gold gets its balance in hardness and meting point which is important for making jewelry. Generally jewelers use 24K gold with lower rating carats such as 22k, 18k and 16K and also alloy it with other soft metals such as silver, palladium and low percentage of copper to achieve that red color touch in jewelries. For example, blue gold is created by alloying it with a 25% iron and purple gold is created by alloying it with some percentage of aluminum. Generally these types of alloyed gold are only made for designer or specialized jewelry.
In the market you can also buy white gold alloy made jewelry that is created with alloyed gold with palladium, silver and some other white metals, however this type of gold is even more expensive than 24K gold. Even though gold prices in India has been on the higher side for some time, but still in 2014 the gold jewelry industry is expected to escalate. According to world gold council analysis, in couple of years the worldwide gold demand would cross $23.8 billion and it would exceed that number in next couple of years.
Gold Mining and Production
India lack natural resources for mining gold, because they are almost no mines in India, and that is why our country depends on African and Middle East countries for all our gold exports. According to WGC report, the total amount of gold mined and supplied ever till 2009 was 166,000 tonnes which is valued at $8.5 trillion US dollars. For so many years South Africa has been the largest gold mining country and India’s gold imports depends on it as well. It is a fact that 51% of gold mined till today comes from South Africa, which is quite a huge number. According to WGC data report, in 2013 China was the biggest gold mining country followed by Australia, Russia, USA, Peru and South Africa. Other bigger player in the industry is Burkina Faso, Indonesia, Ghana and Uzbekistan. Gold rate in India is deeply depended on these countries’ production and price of US dollar.
Recent discovery of rich gold mining fields in the Atacama Desert Mountains has been a topic of interest for gold traders, which is a region located at the border of two countries, Argentina and Chile. Similar to this, Johannesburg city of South Africa was also a result of gold mining rush in the region that led to the discovery of world’s largest gold fields.
More info here: http://en.wikipedia.org/wiki/Gold_as_an_investment
International Gold Monetary Exchange
To use it for monetary exchange and for export import process, gold is generally melted and formed into bars. As an efficient indirect exchange and as a commodity asset wealth that can be stored, gold is worldwide used as wealth. For gold trading purposes you can buy standardized gold bullions, bars or coins that are available in fixed weight and purity measurement.
Even though rates of other precious metals such as palladium, platinum and rhodium are even higher compared to gold, but still it is one of the most desired and in-demand metal for centuries. In past centuries before introduction of paper currency, gold coins were used as currencies because of its value. Indian citizens and in Indian culture gold has been a symbol of auspiciousness, purity and a valuable asset of wealth. That is why prices of 24K pure gold is beyond the reach of a common man today.
Investing in gold bars
If you see professional gold investment companies in India, they would always recommend investing in bullion coins or bars because they believe it is the safest option for investment that is seen as a hedge against economic instability and disruptions. However not all economist would recommend that it is a hedge against currency depreciation.
Majority of companies selling gold bullion coins for investment are minting them in 24k pure gold, but American Gold Eagle are minting their coins in 22K which has changed historically. Indians generally buy South African Krugerand but these the Canadian Gold Maple Leaf coins is the safest possible option because they are minted in 24K gold which is purest you can get with 99% purity. Even though prices are higher but American Buffalo gold bullion coin is also a good alternative for Indian gold buyers.
Given below table is a list of latest gold rates in India in INR currency. All the city price details and data are updated by our experts every hour to bring the current sport rates for you. Sometimes you may see more frequent updates and fluctuation in prices because of live feed we get from reliable resources. To be more clear all the gold prices in India and different cities are measured per 10 gram calculation for standard karats in India including 24K and 22K.
At GoldRateInd.in we have the best commodities prices experts and investment plans specialists that provide you frequently updated charts and lists of today’s gold prices in different cities of India. We bring you up to date price graphs in gram, kilogram and per ounce categorised under major currencies of the world as well. Our rate charts are timely updated to deliver accurate prices for buying and investment. We also have a database in which you can check rates of past week, months, years that helps your check prices for even last 40 years. All top metro cities’ gold prices including New Delhi, Mumbai, Chennai and Bangalore are provided in timely manner.